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News and Events

September 19, 2008

CanaDream Corporation Reports First Quarter Earnings of $2.1 million or 12.7 cents per share

The Company encourages interested parties to access CanaDream Corporation’s Management Discussion and Analysis (MD&A) on the SEDAR website, www.sedar.com, for a more detailed discussion of these results.

Summarized results for the three months ended July 31, 2008 are as follows:

July 31, 2008

July 31, 2007

%Change

$

$

Revenue

10,869,000

10,004,000

9%

Revenue less direct expenses

5,626,000

5,198,000

8%

Income before income tax

3,050,000

2,950,000

3%

Net and comprehensive income

2,108,000

1,942,000

9%

Cash flow from operations

7,942,000

7,084,000

12%

Basic earnings per share

12.7 cents

11.8 cents

8%

Fully diluted earnings per share

12.5 cents

11.6 cents

8%

Common Shares outstanding

16,547,042

16,471,939

Weighted average number of common shares outstanding

16,838,372

16,752,679

Increased revenues of $865,000 for the three months resulted from increased rental nights,utilization, and fleet sales.

Direct expenses for the three months increased by $437,000 or 9% compared to last year’s $4.8million. As the increase in revenue exceeded the increase in direct expenses this resulted in anincreased gross margin for the three months of $428,000. Direct expenses as a percentage ofgross margin remained consistent with prior year first quarter at 48%.2

Investment in rental fleet was $28.7 million at July 31, 2008, an increase of $5.6 from July 31,2007 and an increase of $13.0 million from April 30, 2008 year-end levels. The investment infleet inventory available for sale was $4.9 million at July 31, 2008 an increase of $470,000 fromJuly 31, 2007.

Fleet capital asset and other financing increased $4.9 million or 20% to $29.4 million from theprior years first quarter of $24.4 million.

The Company’s short-term liquidity position (cash and cash equivalents plus accounts receivableand short term deposits, minus accounts payable and accrued liabilities) stands at $4.0 millioncompared to $5.7 million at July 31, 2007.

It should be noted that the Company’s core business, rental of recreational vehicles, is seasonal innature with the majority of its revenue being earned during the May to October period, its firstand second quarters. The majority of the company’s direct expenses are incurred in that sameperiod. The Company markets rental units and fleet inventory available for sale on a continuousbasis throughout the year, however sales of such units are generally strongest in the spring andearly summer. As a result of ongoing interest, amortization and adjustments and selling, generaland administrative expenses, the last two quarters of the fiscal year normally produce operatinglosses. Losses incurred in the last two quarters may exceed profits earned in the first two quartersof the fiscal year.

The financial data included in this release has been prepared in accordance with Canadiangenerally accepted accounting principles (GAAP), except for the term cash flow from operationsper share. Cash flow per share is a measure that provides shareholders and potential investorswith additional information regarding the Company’s liquidity and its ability to generate funds tofinance its operations.

The Company encourages interested parties to access CanaDream Corporation’s MD&A on theSEDAR website,www.sedar.com, for a more detailed discussion of these results.

CanaDream is a Canadian tourism company that is utilizing its proprietary business-to-businessweb-enabled system, <www.canadasbest.com>, and its business-to-consumer on-line Internetreservation system, <www.canadream.com>, to operate and expand its network of RV rentallocations in Canada. CanaDream maintains six Company-operated locations in Calgary,Vancouver, Whitehorse, Toronto, Montreal, and Halifax. The Company is also leveraging itsproprietary technology to build a franchised network of associate dealers that are fullyinterconnected to CanaDream’s e-commerce systems. CanaDream currently has one associatedealer franchisee in Kelowna, British Columbia.